In this article, when we talk about 'packaging', we're not referring to the physical packaging of your product (eg cardboard box). Rather, we're referring to the way your product is positioned in the marketplace. Here's an interesting story that highlights the importance of packaging:
In the early 1900's Kraft created a cheap powdered cheese designed to have a long shelf life. Unfortunately for Kraft, the product was a flop and they ended up dumping 6 million pounds of the powdered processed cheese with the US Army. In the mean time, a clever salesman within Kraft decided to combine the powdered cheese with macaroni pasta to create 'Kraft Dinner'.
The product was an instant success and was marketed to families as a cheap and easy dinner. Kraft had sparked the beginning of modern packaged food products. So while the powdered cheese was a terrible flop, when combined with macaroni and marketed from a different angle – 'Kraft Dinner' became one of the most successful packaged food products of all time.
Today, the company sells over 7 million boxes of macaroni and cheese every week.
Another example is the telecommunications industry.
If you've had a phone line connected recently you might have noticed that all the phone companies are bundling their basic products with extra services like Internet access or cable television.
If you purchase one service, you get a discount on additional services. This type of 'packaging / bundling' has been very successful for telecommunications companies.
The moral of the story is 'it's not what you sell … it's how you sell it'.
If you're having trouble getting your products and services out the door, try packaging them in a different way and experiment with new marketing angles.
